In news that may make Pandora (P) shareholders gulp hard, Apple (AAPL) is looking to create a...

In news that may make Pandora (P) shareholders gulp hard, Apple (AAPL) is looking to create a rival to the popular custom-radio service, reports the WSJ, and has recently initiated licensing talks with record labels. It's not Apple's first foray into the area, but sources say these talks appear to be more serious than previous efforts. Pandora -4.5% AH.

Apple won't do this unless it can negotiate a better licensing deal similar to that used by broadcast radio; which will benefit P... Or it may just buy Pandora. Either way, P goes higher after an initial buying opportunity.